Thursday, 27 October 2016

The
Minister of State for Steel, Shri Vishnu Deo Sai launching the MSTC Metal Mandi
“M3” Portal, on the occasion of the National seminar on “Steel making through
Induction furnace route: current challenges and future prospects”, organised by
the All India Induction Furnaces Association (AIIFA), in New Delhi on October 22, 2016.
The Secretary, Ministry of Steel, Dr.ArunaSharma
and other dignitaries were also present.

MSTC METAL MANDI “M3”, an e- shopping mall, is a
virtual market place providing B2B & B2C facility for sale and purchase of
iron, steel and Non Ferrous products especially for small and medium sector
manufacturers. Registration on “M3” website (URL: www.mstcecommerece.com/m3) is going on. Seller
Registration is free of cost for “Early Birds” for a limited period. Buyer
registration is also free of cost. MSTC may provide training and support for
this new solution that ensures improvements in sale and customer satisfaction.

Buyer registration is also free of cost. MSTC may provide training and support
for this new solution that ensures improvements in sale and customer
satisfaction.

Tuesday, 18 October 2016

With the
demand in steel sector picking up, Karnataka’s seven iron ore mines in Bellary district have
been auctioned this month at a premium rate.

The final bid
for the iron ore mines in Karnataka was in the range of 59 to 111 per cent of
the floor price — which is monthly value of the mineral dispatched from the
mine. JSW group — whose firm JSW Steel is the largest steel company in the
country — won five iron ore mines in Karnataka. MSPL, a major iron ore mining
company, won other two iron ore mines of the state this month.

The first
phase of mines auction, which has been going on since December last year, has
seen auction of total 16 non-coal mines till now by seven state governments.
The eight mines which were auctioned by other state governments — six of them
were limestone, one gold and one diamond — did not see such a high bid from the
companies. The bids for these mines were in the range 8 per cent to 59 per
cent. Odisha’s iron ore mine was auctioned at a bid of 44 per cent of the floor
price in March 2016.

The auction
of the 16 non-coal mines is estimated to bring a total revenue of Rs 59,447
crore over the next 50 year period for these state governments.

As per the
new mining law — Mines and Minerals (Development and Regulation) Amendment Act,
2015 — which came into effect from January 2015, the non-coal mines have to be
auctioned by the respective state governments. Under the old mining law, the
state governments only had the powers to grant the mining lease to any company
as per their discretion.

The auction
process takes place in two rounds. Mineral auction rules, which have been
formed under the new mining law, clearly state that in the first round, the
bidders have to quote the percentage of the monthly value of the mineral
dispatched from the mine. The highest percentage quoted then gets marked as the
floor price for the second round.

Subsequently,
the bidders get ranked on the basis of the descending initial price offer
submitted by them. The first 50 per cent of the ranks or the top five bidders,
whichever is higher, are termed as qualified bidders for participating in the
second round of electronic auction. The second-round auction then follows the
simple forward-bidding process, where the bidder quoting the highest percentage
is deemed as the winner.

Bhopal:In a first, a diamond mineral block in MadhyaPradesh's
Panna district having precious stone deposit worth nearly Rs 106 crore has gone
under the hammer.

"Hatupur Diamond mineral block was successfully auctioned
on October 5, in
Panna district. This is the first diamond mineral block of the country which
went under the hammer," a state official said today.

According to Secretary, Mineral Resources, ManoharDube,
"Diamond mineral worth Rs 106 crore is available in the Hatupur
block."

Bansal Construction Works emerged as the preferred bidder by
submitting the highest final price offer after two rounds of competitive
bidding.

Three other companies - Rungta Mines Ltd, Thriveni Earthmovers
Ltd and Pushpanjali Tradevin Pvt Ltd - were also in contention for the block.

The block witnessed aggressive bidding from the companies which
lasted approximately eight hours and a final bid at 22.31 per cent was
received.

The block was carefully chosen based on industry requirements
and its attractiveness in terms of size, land ownership pattern and economics.

The block located is presently under G3 category and is spread
over an area of 133.50 Ha.
It has 0.604 MT of inferred resources with diamond incidence of 10.20 carat/100
tonnes.

Prospecting operations would be carried out first after which
the mining lease would be executed thereupon subject to compliance with
conditions stipulated in the Act and rules, the official said.

An additional revenue of Rs 25 crore is estimated from the block
to the state government over the mining lease period. The royalty and other
statutory payments over the lease period are estimated to be about Rs 11 crore,
he said.

SBI Capital Markets was the transaction adviser for the auction
process and MSTC Limited was auction platform provider.

The government is committed to making MadhyaPradesh
a top mining destination in the country and is taking several steps to boost it
(mining) in the state.

Saturday, 1 October 2016

MSTC conducted e-Auction for allocation of Mining Lease of Lime Stone Block - 3B1- (b) n/v Deh of Tehsil Jayal, District Nagaur, Rajasthan. This is the first time mineral block is allocated in Rajasthan through e-Auction. News appeared in Times of India, Jaipur on 24th September,2016 is as below:

Rajasthan
received a record eight times the reserved price for the largest limestone
block in the country in the e-auction conducted on Thursday. The block,
situated in Jayal tehsil of Nagaur, has 168 million tonne of high-grade
limestone resources.

Three major cement companies such as
Emami Cements, JSW Cements and Mangalam Cements were in the fray for bidding.
The reserve price for the block was approximately INR 35 per tonne. After a
session of aggressive bidding, the block received a final bid of about INR 300
per tonne from Emami Cements which is more than eight times the reserve price.
“This is a major success for the department as it will result in revenue of at
least INR 6,000 crore for the state over the life of the mine as well as create
hundreds of jobs in the area. Rajasthan is already the leading cement
manufacturer in the country with the presence of 23 cement plants and this will
further consolidate the state's position,“ secretary (Mines) AparnaArora
said in a release.

As per the two-stage bidding
process, the reserve price for initial bids was set at 7% of INR 500. In the first round,
the highest bid came at 16.59% which was set as the floor price for second
round that followed the e-auction route. The block witnessed aggressive bidding
from the companies and received a final bid at 60.09% (of INR 500) from Emami
Cements, more than 8 times the reserve price of INR 35 beating the previous
record of 58.95% achieved in Chhattisgarh.

The block was carefully chosen based
on industry requirements and its attractiveness in terms of size, land
ownership pattern and economics.

“The government is committed to
making Rajasthan the top mining destination in the country and is taking
several steps to boost mining in the state. We are investing in world-class
exploration capabilities as well as focusing on clearing all pending
applications,“ the secretary said.

The department is in the process of
selecting minerals blocks for the next round of auctions which will be announced
soon.